SBI's new ATM transaction rules: Check charges, free & paid ATM withdrawals

The State Bank of India (SBI) will implement revised ATM transaction charges and free usage limits for its customers. These rules are effective from February 1, 2025. This move aims to streamline fee structures and promote digital banking, impacting both financial and non-financial transactions at SBI and other bank ATMs.

SBI has made changes to the number of free ATM transactions available for savings account holders, effective February 1, 2025. The revised policy applies to both financial and non-financial transactions conducted at SBI and other bank ATMs. Under the new policy, all customers, regardless of their average monthly balance or location (metro or non-metro), will now receive 5 free transactions at SBI ATMs and 10 free transactions at other bank ATMs per month.

Under the new policy, all savings account holders can perform five free transactions per month at SBI ATMs and ten free transactions at other bank ATMs. Customers maintaining an average monthly balance (AMB) between Rs 25,000 and Rs 50,000 will have five free transactions at other bank ATMs. Account holders with an AMB exceeding Rs 1,00,000 will continue to enjoy unlimited free transactions at both SBI and other bank ATMs.

After surpassing the monthly limit of free ATM transactions, SBI will impose a charge of Rs 15 + GST per transaction at SBI ATMs, regardless of the location. For transactions at other banks' ATMs, the fee is higher at Rs 21 + GST per transaction, applicable across all areas, including metro cities.

For balance enquiries and mini statements, there will be no charge at SBI ATMs beyond the free limit. However, a Rs 10 plus GST fee will apply at other banks' ATMs. Additionally, the Reserve Bank of India (RBI) has announced an increase in ATM transaction fees to Rs 23 per transaction from May 1, 2025.Last month, the Reserve Bank of India (RBI) announced that the maximum ATM withdrawal fee has been hiked to Rs 23 per transaction, following a rise in the ATM interchange fee. Exceeding the free monthly limit will result in this higher fee, up from the previous amount of Rs 21, as per the RBI's announcement.

ATM earnings

According to the Center's findings, the State Bank of India (SBI) has been able to generate significant revenue from ATM cash withdrawals, while other public sector banks (PSBs) are struggling financially in this regard. SBI has reported a profit of Rs 2,043 crore from ATM cash withdrawals over the past five years, whereas nine PSBs have collectively experienced a loss of Rs 3,738.78 crore in the same period.

This contrasts with losses reported by nine other public sector banks, with only Punjab National Bank and Canara Bank joining SBI in profiting from these services. The revisions aim to align ATM transaction policies and enhance customer experience across locations.